Capital allowances and Free zone: Difference between pages

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imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add abbreviation - source - UK parliament briefing - https://researchbriefings.files.parliament.uk/documents/CBP-8823/CBP-8823.pdf)
 
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1. ''UK tax.'' 
(FZ).


Relief from income tax and corporation tax based on eligible capital expenditure.
1.  ''International trade - customs duty''.


The rate of relief depends on the amount and the nature of the expenditure.
Alternative name for a freeport, a zone around a sea port or airport that enjoys customs duty exemptions.




2.
2.  ''Trade - international trade - customs duty - tax''.


Similar relief under other tax systems, often known as 'tax depreciation'.  
A zone in a country that enjoys exemptions from customs duties, together with other support, often including other tax advantages.


Tax depreciation and capital allowances generally give the same total tax relief over time, as the total accounting depreciation charged on the same assets over their total life.
Free zones are often located around sea ports, airports or international borders.


However, the phasing of the tax relief will often differ from the phasing of the accounting depreciation charges.


A key risk of free zones is that they can facilitate fraud and other organised criminal and terrorist financing activity.


These timing differences are one source of deferred tax assets and liabilities.


The support that can be given under international law by way of free zones is limited by state aid rules, including those of the World Trade Organization.


== See also ==
The terms Free zone and ''free trade zone'' are sometimes used interchangeably.
* [[100% capital allowance]]
 
* [[Annual Investment Allowance]]
 
* [[Balancing allowances]]
==See also==
* [[Balancing charges]]
*[[Customs duty]]
* [[Capital ]]
*[[Free trade]]
* [[Capital expenditure]]
*[[Free trade zone]]
* [[Corporation Tax]]
*[[Freeport]]
* [[Deferred tax]]
*[[International trade]]
* [[Depreciation]]
*[[State aid]]
* [[First year allowance]]
*[[World Trade Organization]]
* [[General pool]]
* [[Income Tax]]
* [[Industrial Buildings Allowance]]
* [[Qualifying expenditure]]
* [[Tax depreciation]]
* [[Tax written down value]]
* [[Writing down allowance]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 13:26, 12 August 2021

(FZ).

1. International trade - customs duty.

Alternative name for a freeport, a zone around a sea port or airport that enjoys customs duty exemptions.


2. Trade - international trade - customs duty - tax.

A zone in a country that enjoys exemptions from customs duties, together with other support, often including other tax advantages.

Free zones are often located around sea ports, airports or international borders.


A key risk of free zones is that they can facilitate fraud and other organised criminal and terrorist financing activity.


The support that can be given under international law by way of free zones is limited by state aid rules, including those of the World Trade Organization.

The terms Free zone and free trade zone are sometimes used interchangeably.


See also

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